UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 15965 / October 29, 1998
SECURITIES AND EXCHANGE COMMISSION v. ARJUN SEKHRI, ET AL.
No. 98-Civ-2320 (RPP) (S.D.N.Y.)
TWO PLEAD GUILTY, DISGORGE $1.1 MILLION AND CONSENT TO
FINAL JUDGMENTS IN INSIDER TRADING CASE
The Commission announced that the Honorable Robert P.
Patterson, United States District Judge for the Southern District
of New York, entered Final Judgments of Permanent Injunction
against Gordon Cochrane and Fuad Dow in this insider trading case
on October 14 and October 19, 1998, respectively. In its
complaint, the Commission alleged that Arjun Sekhri, then an
investment banker at Salomon Smith Barney Inc. in New York City,
tipped Dow, his former college roommate, with information about
six major corporate transactions before the transactions were
announced to the public. Dow gave the information to Cochrane.
Cochrane and Dow bought common stock, call options, or both, in
the companies involved before the public announcements (LR-15691,
April 1, 1998).
The judgment against Cochrane orders him to disgorge trading
profits and prejudgment interest of approximately $684,000. The
judgment against Dow orders him to disgorge trading profits of
approximately $469,000. The judgments enjoin Cochrane and Dow
from violating Sections 10(b) and 14(e) of the Securities
Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder. The
Commission did not seek penalties against Cochrane or Dow, and
waived disgorgement of additional profits from Dow, based on
their demonstrated inability to pay additional amounts. Cochrane
and Dow consented to the entry of the judgments without admitting
or denying the Commission's allegations.Cochrane and Dow earlier
pled guilty to criminal charges involving the same conduct.
(United States v. Cochrane, No. 98 Cr. 740 (S.D.N.Y., plea
entered July 16, 1998); United States v. Dow, No. 98 Cr. 635
(S.D.N.Y., plea entered June 25, 1998).
The Commission's claims against the remaining defendants are
still pending.